The City of Florence announced Tuesday night it had discovered “revenue diversion activities within a specific revenue stream,” a discovery that had prompted it to contact the FBI to begin a criminal investigation.
The City’s announcement, which you can read here, informed the public that the Department of Local Government had granted the city an extension of its annual audit submission and that the city would cooperate with the FBI’s investigation.
Essentially, the city made a request to the state to extend its annual audit requirement after it discovered that public money was being moved toward something inappropriate or seemingly criminal. The announcement doesn’t give details, but the discovery was enough for city staff to contact federal investigators and begin turning over documents.
“The revenue diversion – which began prior to Mayor Aubuchon taking office in 2023 – was not a one-time diversion,” the announcement reads. Apparently, the diversions were discovered following the reorganization of the city’s finance department in 2025 after the departure of the city’s former CFO.
“Because this is an active federal criminal investigation, there are limits on what we can share,” said Mayor Aubuchon. “But it is important our residents know that it was the City that uncovered the revenue diversion and it was the City that requested the federal investigation. Once the results of the FBI investigation are released, we will provide additional verified information in the spirit of transparency and accountability.
“And I promise you,” Aubuchon said, “that we will aggressively hold anyone involved with this revenue diversion accountable to the fullest extent of the law, including demanding restitution. The City of Florence will not be issuing any additional public comments on this issue moving forward to ensure the ongoing federal criminal investigation is not compromised.”
LINK nky will report more on this situation as it develops.